Housing Market in 2026: Preparation Key
Update: 2025-12-17
Description
In 2026, the housing market is anticipated to be less volatile, but not significantly more affordable. Experts advise buyers to prioritize preparation, adaptability, and local market understanding over market timing. While mortgage rates are lower than their recent peak, they are unlikely to drop significantly, potentially hovering around the low to mid-six percent range. Home prices are expected to decelerate rather than plummet due to ongoing housing shortages. The rental market, however, saw some relief in 2025, particularly in the South and Southeast, with increased vacancies and softer rents. Developers are expected to slow down construction in 2026. For those considering a home purchase in 2026, the market is projected to be balanced, with local conditions varying greatly. Buyers should focus on reducing debt and building cash reserves for a home purchase.
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